The Congressional Budget Office (CBO) said it expects the federal government to have a $1.7 trillion deficit this year.
Its original estimate was $1.7 trillion.
The projection comes as the Supreme Court ruled against Biden’s student loan forgiveness policy, a decision that gives billions of dollars back to the government.
Despite the savings from the ruling, spending has still increased by 34%, or $146 billion more, due to interest payments.
“On the basis of its estimate of the deficit through July and preliminary estimates of revenues and outlays in August and September, CBO now expects that the total deficit for 2023 will be $1.7 trillion, or about $200 billion larger than the estimate it published in May,” according to CBO analysts.
“Revenues and outlays alike are now anticipated to be below amounts CBO projected in May, but the reduction in revenues is larger,” analysts added.
Reporting from The Washington Times:
On the spending side, all the big programs are costing more. Social Security spending this year is up 11%, or $111 billion. There are more people getting checks, and inflation drove up the size of each check, too. Medicare spending is up $104 billion, or 18%, and Medicaid spending is up $29 billion, or 5%.
